Industrial poverty alleviation is one of the most important aspects of targeted poverty alleviation. Identifying the mechanism influencing the spatial differentiation of the benefits of industrial poverty alleviation plays an essential role in optimising an industrial layout for poverty alleviation, consolidating poverty alleviation achievements, and revitalising rural industries. This study examined the spatial distribution characteristics and influencing factors of the benefits of industrial poverty alleviation at the village level using the household data collected from Jiangjin District, Chongqing, China. The results show that the benefits of industrial poverty alleviation presented obvious spatial differentiation in the villages with the overall performance being high in the north and low in the south and decreasing from the south of the county to the north and south. Spatially, there was a significant positively correlated agglomeration effect. High‐value agglomeration areas were concentrated in the north with the characteristics of ‘one centre and two subcentres’. However, low‐value and outlier agglomeration effects were not obvious, presenting sporadic distribution. Seven major factors affect industrial poverty alleviation in Jiangjin District, including average altitude and land transfer rate. The interaction between any two of the seven factors has a more significant impact than that of a single factor.